Item:
Title
Approve Budget Ordinance Amendment #26BCC006 Appropriating $30,000 in General Fund Fund Balance for Payment of Lease Expenses and Approval of the Lease Agreement for the Durham County Office of Emergency Services (OES) Fleet Maintenance Repair Facility Between Knightdale Holdings, LLC. (Landlord) and Durham County (Tenant) at 1129 E Geer St. Durham, NC for a 4-year term, with the First Year’s Rent Amount of $119,550 and Other Terms as Noted in the Attached Lease Agreement
Body
Date of BOCC Meeting: July 28, 2025
Request for Board Action:
Agenda Text
The Board is requested to approve Budget Ordinance Amendment #26BCC006 appropriating $30,000 in General Fund fund balance for payment of lease expenses and the Lease Agreement for the Durham County Office of Emergency Services (OES) Fleet Maintenance Repair Facility Between Knightdale Holdings, LLC. (Landlord) and Durham County (Tenant) at 1129 E Geer St. Durham, NC for a 4-year term, with the first year’s rent of $119,550 and other terms as noted in the attached Lease Agreement upon final approval by the County Attorney’s Office.
Durham County has leased space for OES Fleet Maintenance at 122 Stone Park Court since 2016. The property was sold to the North Carolina Railroad in 2023 and is slated for demolition to allow for the realignment of the existing rail line adjacent to the property. Durham County has been notified that we must vacate the building by December 1, 2025. Multiple locations for the relocation of OES have been explored, and staff have determined that the location at 1129 E Geer Street is the best option to stand up a temporary facility by the December deadline. The permanent OES Fleet Maintenance Facility is envisioned to be co-located with a new General Services Fleet Maintenance Facility on the County’s property at Junction Road. That co-located maintenance facility is in the County’s Capital Improvement Plan for further discussion.
The lease term is August 1, 2025 through July 31, 2029. The first year’s rent is $119,550 and the rent escalates by 3% each following year. The County will pay Additional Rent in an amount estimated to be $13,230 per year to cover the landlord’s taxes and insurance. There are no Common Area Maintenance charges because the County is leasing the entire site, and no security deposit required from the County. The County will pay for all utilities. The Lease was negotiated by outside Counsel contracted through the County Attorney’s Office.
Budget Ordinance Amendment #26BCC006 appropriating $30,000 in General Fund fund balance provides necessary funding to cover the increased cost of the new lease for the property at 1129 E Geer Street.
General Services staff and contractors will maintain this property and make repairs as needed. This includes building systems, landscaping, hardscaping, parking lot, fencing, extermination, and refuse hauling. The Landlord maintains responsibility for repair and replacement of all roof and structural systems.
Upon approval and execution of the Lease Agreement, the County Project Management Division will lead the design and upfit of the building with all possible efforts to meet the December 1, 2025 deadline for OES to vacate their current facility. The Board has previously approved the Capital Project (4730DC164), Budget Ordinance Amendment (25BCC045), and architectural and pre-construction contracts to effectuate this renovation in a timely fashion.
Alignment With Strategic Plan: This item aligns with Strategic Plan Goal: Sustainable Infrastructure & Environment Plan for long-term use of County land, facilities, and equipment.
Resource Persons: Christy Raulli, Senior Real Estate Officer; Dan Nosbusch, Project Manager; Peri Manns, Deputy Director; Jay Gibson, Director, Engineering and Environmental Services; Marc Ferguson, EMS Administration and Finance, Mark Lockhart, Emergency Services Director; Curtis Massey, Deputy County Attorney
County Manager’s Recommendation: The County Manager recommends that the Board approve Budget Ordinance Amendment #26BCC006 appropriating $30,000 in Gereal Fund fund balance for payment of lease expenses and approve the Lease Agreement for the Durham County Office of Emergency Services (OES) Fleet Maintenance Repair Facility Between Knightdale Holdings, LLC. (Landlord) and Durham County (Tenant) at 1129 E Geer St. Durham, NC for a 4-year term, with the first year’s rent of $119,550 and other terms as noted in the attached Lease Agreement upon final approval by the County Attorney’s Office.
Signature
County Manager: ____________________________